A variety of high-flying tech stocks have reported earnings or made major announcements recently, with significant stock movement preceding & following the reports. These stocks are probably worth a closer look at the charts with some technical analysis to evaluate whether it’s time to invest. We’ll use Stock TickerPicker charts and a scan of the headlines to make some quick evaluations which you can take further in your own analysis.
First we have AAPL. Apple announced earnings that while quite good, fell short of whisper numbers. The stock plunged more than 10% the day after earnings, and then stabilized in the mid 450s range. How stable is stable? It has bounced back from it’s brief move below the bottom Bollinger Band, but the 1-month MACD still doesn’t show a real momentum turnaround and the RSI doesn’t show either massive overselling or a turnabout. I think with valuation solid the stock probably doesn’t have much more to fall, but I don’t see a major rebound in the near term short of an unexpected product announcement catalyst.
Next is NFLX. Netflix reported growth in subscribers in the 4th quarter of 2012, and this coupled with a strategy of international expansion, original programming & stickiness to tablet success seems to have convinced investors it’s a long-term winner – with the stock soaring after earnings. This chart shows a distinct breakout to highly overbought levels on the RSI, and strong momentum on the MACD. Volume however is heading back towards historic norms and the stock is hitting resistance. I say it doesn’t have much more upward movement from here for a while.
Finally we have RIMM (Blackberry). They just announced their Blackberry 10 operating system along with some new devices (but the phones will hit the US late). Reviews are starting to come in from The Wall Street Journal, TechCrunch and others, and they are mixed. The new software is reasonably good but not amazingly better than iOS or Android offerings – probably the bar that is needed for RIMM to regain a major seat at the smartphone table. The stock chart shows some significant downward pressure, with the stock dropping below its 20-day SMA on high volume, and a crossover in the works on the MACD. I’d short this stock for now – it probably has another dollar or two to fall in the next few weeks.